Development Impossible While Deficits Persist – Radhakrishnan
11-Jul-2025.
As long as the country is running deficits, development will be extremely difficult. The government must take action to eliminate these deficits.
Successive governments have promised estate workers Rs. 1,700 in wages, but so far they have never received more than Rs. 1,300, said Opposition MP V. Radhakrishnan.
He spoke during the debate under the Import and Export (Control) Act on July 8.
He further said that Sri Lanka’s export earnings amount to 3,857 billion, while import expenditures stand at 5,685 billion, leaving a deficit of 1,828 billion. We continue to prioritize imports over exports, particularly in food items.
This is the result of governments operating without proper planning. We face deficits in both trade and the budget.
With deficits continuing, developing the country is nearly impossible. We must understand what steps are necessary to correct this.
Earlier, it was said that corruption was the cause of deficits. Now that such corruption is supposedly absent, the government must act to resolve the issue.
Good management is needed. Yet today, officials are afraid to carry out their duties, fearing that any problem will land them in jail. They must be given the authority and confidence to act decisively.
Furthermore, conflicts between Iran and Israel have obstructed tea exports. The apparel sector, our second-largest export, is now suffering from increased US tariffs.
Even though the government says it is negotiating with the US, we have seen no results. If the US imposes a 44% tariff, what will become of our garment factories?
The government must act responsibly to resolve these challenges.
If tea exports collapse, workers will face severe hardship. Even now, their wages are insufficient. Governments keep promising Rs. 1,700 wages, but they have not delivered. With the rising cost of living, even Rs. 1,700 is inadequate.
The recent resumption of vehicle imports is raising concerns about further depletion of dollars. We have already seen how, when dollars ran out in the past, we could not import essential food, and India had to step in with $4 billion in support. The government must ensure we do not return to such a crisis.
Our farmers are also suffering. When they produce crops such as tubers, onions, and rice, the government imports competing goods, harming domestic agriculture.
While claiming to offer cheaper prices to consumers, the government fails to realize that such policies will ultimately force all products to be imported in the future.
